EUR/JPY loses upward momentum

EUR/JPY failed to sustain the rally started this week and dipped ahead of the initial resistance at 104.10. The first support to be encountered lies at 103.39/10, although an extension of a decline is also viable. A lower level could be found at 102.63, while 102.20 will be reached provided that a violation of the up-trend support line is confirmed, which seems to be unlikely given the current context.

The gap between the amounts of long and short positions has narrowed, as they constitute 41% and 59% of the market, respectively, though the overall sentiment remains bearish towards the pair. As for the orders, 63% are to acquire the Euro and 37% are to sell it against the Japanese Yen.